Market Analysis: GBP/USD Attempts Recovery, USD/CAD Grinds Higher

GBP/USD is attempting a recovery wave from 1.2090. USD/CAD is rising and might aim for a move above the 1.3720 resistance zone.

Important Takeaways for GBP/USD and USD/CAD Analysis Today

· The British Pound is struggling to gain pace for a move above the 1.2200 region.

· There is a key bearish trend line forming with resistance near 1.2170 on the hourly chart of GBP/USD at FXOpen.

· USD/CAD is showing positive signs above the 1.3670 support zone.

· There is a bullish flag pattern forming with resistance near 1.3720 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.2200 zone. The British Pound traded below the 1.2140 support to move into further a bearish zone against the US Dollar, as mentioned in the previous analysis.

The pair even traded below 1.2115 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2090 level. A low was formed near 1.2093 and the pair is now attempting a short-term recovery wave.

There was a fresh upside above the 50-hour simple moving average. The pair climbed above the 50% Fib retracement level of the downward move from the 1.2191 swing high to the 1.2093 low.

Immediate resistance on the upside is near a key bearish trend line at 1.2170. It is close to the 76.4% Fib retracement level of the downward move from the 1.2191 swing high to the 1.2093 low. The first major resistance on the GBP/USD chart is near the 1.2190 level.

A close above the 1.2190 resistance might spark a decent recovery wave. The next major resistance is near the 1.2220 level. Any more gains could lead the pair toward the 1.2300 resistance in the near term.

Initial support sits near 1.2140. The next major support sits at 1.2115, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2020.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3600 level. The US Dollar started a fresh increase above the 1.3670 resistance against the Canadian Dollar.

The pair cleared the 50-hour simple moving average and climbed above 1.3720. Finally, it tested the 1.3735 zone before there was a drop toward 1.3670. The pair traded as low as 1.3669 and it is again moving higher.

There was a move above the 50% Fib retracement level of the downside correction from the 1.3734 swing high to the 1.3669 low. There is also a bullish flag pattern forming with resistance near 1.3720.

Initial resistance sits near the 76.4% Fib retracement level of the downside correction from the 1.3734 swing high to the 1.3669 low at 1.3720. A clear upside break above 1.3720 could start another steady increase.

The next major resistance is the 1.3735 level. A close above the 1.3735 level might send the pair toward the 1.3800 level. Any more gains could open the doors for a test of the 1.3840 level.

Conversely, the pair could start another decline. Initial support is near the 1.3710 level on the same USD/CAD chart. The next major support is near 1.3670. A downside break below the 1.3670 level could push the pair further lower. The next major support is near the 1.3600 support zone, below which the pair might visit 1.3550.